Land of Idols: Lies, Wars, Empire

"The goal has been the 'Third Worldization' of the United States:

• an increasingly underemployed, lower-wage work-force;
• a small but growing moneyed class that pays almost no taxes;
• the privatization or elimination of human services;
• the elimination of public education for low-income people;
• the easing of restrictions against child labor;
• the exporting of industries and jobs to low-wage, free-trade countries;
• the breaking of labor unions;
• and the elimination of occupational safety and environmental controls and regulations."

Michael Parenti, Land of Idols, 1993

Long Term Gold Chart with Retracements

Our friend Lenny sent the patrons of the café a long term gold chart that is quite interesting  We have certainly been through the ups and downs of these markets together,

It shows the strong support at 1180, and the longer term trend line that works on a logarithmic chart.

I asked Len to include the retracement levels, because as I recalled there had been a prior big retracement earlier in this bull market, from 1030 to 681 that shook quite a few people out.

I was wondering how this current price decline compared.

Here is the chart.  We can draw lines on charts all day.  It is the action in the market, the push of supply against the pull of demand, that will set the true marks.  But these days it seems we can only count on price discovery in the intermediate term.

Russia Adds Another 300,000 Ounces of Gold To Its Reserves In August

 

 

Notice something that might be called a 'policy change' around 2007?

That is when we saw the sea change in the central banks, when they turned from net sellers to net buyers overall of gold bullion. 

The Comex moves its paper and relatively thin reserves around the around the plate. 

 

 Bill Holter thinks that China and the East are starting to take away the pricing mechanism from the CME and London.    Let's see how that works out.  I notice quite a few of the usual suspects on the SGE.

But by all accounts, Russia and China just keep quietly stacking.

 

At least based on the numbers that we know about.  They may be taking in quite a bit more from domestic sources.  I suspect that this is the case with China.

 

This chart is courtesy of the data wrangler, Nick Laird at Sharelynx.com